Studies in the Area of Insurance Reported from Florida Atlantic University (State Subsidized Reinsurance Programs: Impacts On Efficiency, Premiums, and Expenses of the Us Health Insurance Markets): Insurance

2023 APR 17 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Investigators publish new report on Insurance. According to news reporting originating from Boca Raton, Florida, by NewsRx correspondents, research stated, “In the U.S., states are allowed to apply for the Affordable Care Act section 1332 waiver to explore in-novative strategies in providing quality and affordable health insurance. Most approved waivers seek to establish state subsidized reinsurance programs, which help offset potential losses of high-cost enrollees in individual markets.”

Our news editors obtained a quote from the research from Florida Atlantic University, “State subsidized reinsurance programs are expected to reduce premiums, but may induce moral hazard and adverse selection issues. In response, this research examines state reinsurance programs’ impacts on premiums, expenses, and efficiency in individual and other major health insurance markets. We use the non-oriented slacks-based efficiency model and the entropy-balancing difference -in-differences regression model. We pool all the states with reinsurance programs and use insurer-level data and a rich set of predictors for our outcome variables. We find that, overall, state reinsurance programs reduce premiums and do not decrease consumer efficiency in individual markets. However, their impacts are differential across states, with no significant effects in at least half of the states. We find mixed ef-fects on expenses and medical utilization efficiency in individual markets, and there are no significant spillover effects in other major health insurance markets.”

According to the news editors, the research concluded: “This research informs the public and provides insights for the U.S. individual health insurance operations in implementing, regulating, and evaluating state reinsurance programs and refining premium benchmarking.(.”

This research has been peer-reviewed.

For more information on this research see: State Subsidized Reinsurance Programs: Impacts On Efficiency, Premiums, and Expenses of the Us Health Insurance Markets. European Journal of Operational Research, 2023;306(2):941-954. European Journal of Operational Research can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; European Journal of Operational Research - http://www.journals.elsevier.com/european-journal-of-operational-research/)

The news editors report that additional information may be obtained by contacting Charles C. Yang, Florida Atlantic University, Dept. of Finance, Boca Raton, FL 33431, United States. Additional authors for this research include Derrick W. H. Fung and Pengyu Wei.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.ejor.2022.08.005. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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